Traditionally, a private branch exchange (PBX) has been used to provide telephone services to a network of local telephones. The PBX may exist in parallel with a local area network (LAN) which provides data services to a network of local computers. It has been contemplated to provision a LAN not only with computers but also with special telephones so that the network can provide telephony services in addition to data services thereby avoiding the need for parallel networks. In a known system, IP telephones connect to the LAN backbone as does a call manager (which is a server configured with call management software) and a gateway to the public switched telephone network (PSTN). The IP telephones include a vocoder so that audio signals may be converted between analog and IP packets. The call manager has a configuration file for each telephone on the LAN assigning call functions to certain of the buttons on the phone, which call functions will be handled by the call manager. Other call functions (e.g., “mute”) are handled by the telephone itself. When the call manager receives keypad digits from a calling phone on the LAN indicative of a called station, it sets up a call by instructing the calling phone to set up a Real-Time Protocol (RTP) audio stream to either the called telephone, if the called telephone is on the LAN, or to the gateway, if the called telephone is on the PSTN. Once the call is set up, the call manager is out of the loop unless the call manager receives a key press indication indicative of a call control function handled by the call manager, such as a call transfer, call hold, call forward, call park, multiple line appearance, or disconnect.